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The Capital Market Landscape and IR
Practices in Singapore
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Presented by: Harold Woo President, Investor Relations Professionals Association (Singapore)
IR Preparation for Roadshows Presentation – 15 May 2015
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Singapore: An International Financial Centre
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SGX’s Business Today
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SGX is the Most International Exchange
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Diversity of Industries on SGX
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Top Sectors on SGX
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Trading Asia in One Place
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Why SGX - Summary
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Singapore is Asia’s Wealth Management Hub
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SGX is a Deep Market for Capital Raising
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Access to both Global and Asian Investors in Singapore
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Active Retail Investors’ Participation
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Connectivity to ASEAN Economies
“To develop long-term relationships with our investors, with an emphasis on forging & sustaining open & consistent communication channels with our various stakeholders”
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Defining Investor Relations
Broaden base of long-term investors
Maximise shareholder value & reduce the company’s overall cost of capital over the long term
Build Co’s corporate brand
Competition for capital, investor attention & analysts coverage
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Fundamental Value of Investor Relations
Fair market Valuation of listed entity
Liquidity of the traded shares / debt instruments
Access to appropriate Capital channels
Further Capital Increases
These should be the mission of all IROs
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Value of Shares vs Stock Price Appreciation
Constantly seeking out new shareholders
Deepen the relationship with existing shareholders
Create visibility of the company
Improve corporate disclosure
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How are They Achieved?
The Board of Directors
Senior Management (eg. CEO, CFO & CCO)
Divisional Management
SBU IROs Key Messaging Quarterly Meetings
What are the Market’s Likes & Dislikes?
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Internal Communication: Feedback
• Institutional / Retail shareholders Shareholders
• Eg. QDII (China), Debt Investors Potential shareholders
• Buy and sell side analysts Analysts
• Work with Corp Comms Dept Financial Media
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Internal Communication: Feedback
Value Drivers
Earnings
Guidance
Transparency
& Trust
Access to
Management
Keep stakeholders connected to distill noise from facts
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What do External Parties Need?
Value Drivers
Communicate strategy which delivers value for shareholders • Develop action plan to enhance perception in the market • Identify initiatives and objectives most important to stakeholders • Understand how management is perceived by investors • Identify any disconnects between what the Group is saying and what
investment community is hearing
Assist investors and analysts to understand the company better • Financial data • Historical information and data • Adding color to the numbers
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What do External Parties Need? (Cont’d)
Earnings Guidance
No Surprises • Knowing what the market expects • Calibrate expectations with likely outcome • Choosing the appropriate channel of communication
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What do External Parties Need? (Cont’d)
Access to Management
Visibility of the CEO and senior management
• IR provides screening and co-ordinate the meetings
• Work with corporate marketing to raise profile and maintain high
exposure
Management of one-on-one meetings important
• Hear it from the horses mouth
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What do External Parties Need? (Cont’d)
Transparency + Trust
Adopt an open and consistent approach • Timely, updated, accurate and adequate information • Ensure consistency and continuity of communication
Lack of transparency creates confusion, lack of confidence and ill-will • Investors place value on good corporate governance • Golden reputation key to access capital markets • Investor confidence is an invaluable advantage
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What do External Parties Need? (Cont’d)
Get investors, analysts and the media interested
• Advertorials – strike the right chord
• News flow to the press
• Overseas conferences
• Special events and activities
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Drumming up Interest
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IRPAS is the professional body representing IR Professionals in Singapore, run by IR professionals for IR professionals Our Mission
• Champion best practices, professionalism and integrity in IR • Empower members to be effective IR professionals with the power of knowledge • Represent views of members and provide the platform for dialogue between companies,
regulatory bodies and the investment community at large • Build a cohesive community for the continued development of practitioners and the IR industry
Our Vision Our vision is to be the professional body representing IR professionals and contribute to elevating the overall standard of the IR profession in Singapore Our Core Values • Professionalism • Integrity • Transparency • Excellence
About Investor Relations Professionals Association
(Singapore)
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Membership Profile IRPAS currently has 198 members, comprising mainly representatives from SGX- and foreign-listed companies covering a spectrum of industries and market capitalisations. We also count leading financial and educational institutions, advisors and service providers in the IR and investment community in Singapore and the region as members. Membership Categories
• Corporate Memberships • Comprise 64% of IRPAS membership base • Includes 3 foreign listcos
• 8I Holdings (ASX-listed) • PT Adaro Energy (IDX-listed) • PT Perusahaan Gas Negara Tbk (IDX-listed)
• Supporting Memberships • Includes top-tier international financial services providers, such as Bloomberg, BNY Mellon,
ISS Corporate Solutions, Nasdaq OMX and S&P International
About Investor Relations Professionals Association
(Singapore)
• IRPAS, Harold Woo and ICIR 2014 featured positively in The Edge Singapore and UK IRS’ Informed magazine
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Raising profile of IRPAS, IRPAS offerings and the Board
• Harold Woo featured in a Channel NewsAsia article following an interview on evolving role of CFOs
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Raising profile of IRPAS, IRPAS offerings and the Board
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IRPAS, SGX and the Singapore Management University commissioned an online survey of IROs of SGX-listed companies between August to September 2013. The findings were later published in a whitepaper.
Key findings:
• Over two-thirds of IROs attend C-suite management meetings, reflecting importance of the IR role
• On having dedicated IROs: • 94% of large and mid-cap companies have one • Only 32% of small-cap companies have one
• IR function is performed by CFO in 75% of companies without a dedicated IRO
• On key responsibilities: • 90% of IROs in large and mid-cap companies cited
communication with financial analysts and investors • 78% of IROs in small-cap companies cited managing
earnings press releases and annual reports • On use of social media to engage investors:
• Used by just 4% of IROs across the market capitalisations
IRPAS Research
2014 EVENTS
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PROACTIVE ENGAGEMENT WITH IR COMMUNITY
• IRPAS organised 8 educational events on topical issues for the IR community in 2014 • Proactive engagement saw steady uptrend in attendance and quality turnouts • Average of 40 to 80 attendees per event
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March: CLSA April: Tulchan-Bloomberg
May: Hong BaoMedia
June: NASDAQ July: OrientCapital
August:LinkedIn
October: IRPASRoundtable
November: MrsMoneyPenny
IRPAS Networking Series 2014 Attendance Chart
MONTHLY NETWORKING EVENTS – March 2014
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“A Fund Manager's Perspective on IR” By Simon Weston, CLSA 13 Mar 2014; 23 attendees “I liked his very first bullet on slide 1 – ‘Since being public can be a hassle, why are we listed?’ Answering that question will go a long way in understanding our roles.” – Michelle Pereira, Manager, Corporate Relations, SATS “It was a good session. It confirmed many of our own thoughts generated by our own investor relations experiences.” – Keith Chu, Vice President, Corporate Marketing & Investor Relations, Boustead Singapore “I enjoyed today's event because the presenter was insightful. He didn’t just provide a generic outline of what IROs should be doing. That is key to engaging an audience of all levels.” – Pamela Kustas, Equity Market Specialist, Bloomberg
MONTHLY NETWORKING EVENTS – April 2014
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“Making Social Media Work for You in IR” By David Shriver, Tulchan and Pamela Kustas, Bloomberg 24 Apr 2014; 30 attendees “Relevant, topical, thought provoking.” – Kathy O’Brien, Managing Director, Red Shoe Communications “I liked how social media is making inroads into uncharted territories.” – Shreya Shetty, Community Manager, Hong Bao Media “Very organised and structured information session.” – Rachael Emile, Producer, Investor Central
MONTHLY NETWORKING EVENTS – May 2014
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“Are You Ready to Face the Analysts and Media?” By Mark Laudi 28 May 2014; 34 attendees “Speaker was insightful and interactive” – Zann Lim, CFO, Haw Par Corporation “Would love to hear more tactics on communicating with the analysts & media.” – Jason Chan, Manager, Ogilvy PR “The speaker, Mr Laudi was very compelling indeed.” – Lim Jae Mie, YTL Starhill Global REIT “Strong insights to IR across the industry and commerce spectrum.” – David Tripp, Kelly Services
MONTHLY NETWORKING EVENTS – June 2014
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“How Effective Is Your IR Programme?” By Kevin P. Langdon, NASDAQ OMX 18 June 2014; 20 attendees “Insightful sharing of effectiveness of IR programme” – Eileen Lee, Manager, Investor Relations, CapitaLand “Short and relevant” – Elena Arabadjieva, Director, Investor Relations, Genting Singapore “Insightful presentation.” – Sylvia Lee, Associate, Investor Relations, Neptune Orient Lines “Very informative and well organised.” – Judy Tan, IR Manager, ARA-CWT Trust Management (Cache) Ltd
MONTHLY NETWORKING EVENTS – July 2014
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“Strategic Investor Relations in Asia” By Vivek Aranha, Orient Capital 3 July 2014; 44 attendees “Relevant topic, experienced speaker” – Chen Fung Leng, Head Investor Relations, Frasers Centrepoint Trust
MONTHLY NETWORKING EVENTS – August 2014
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“Networking and telling your professional and corporate stories on LinkedIn” By Roger Pua and Jeanne Lee, LinkedIn 29 August 2014; 20 attendees “My colleague and I really enjoyed the event, and the talk was insightful and engaging at the same time.” - Tan Wen Nan, Consultant, FTI Consulting “This is really good. I’m surprised that more companies aren’t here” - Pamela Kustas, Equity Specialist, Bloomberg “Relevant and useful.” - Kathy O’Brien, Managing Director, Red Shoe Communications
MONTHLY NETWORKING EVENTS – October 2014
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“IR Roundtable – Corporate Reporting Levelling Up: The Integrated Reporting Journey” 2 October 2014; 81 attendees “[Good] guidance on how to kickstart the integrated reporting process” - Denise Wong, Assistant Manager, Investor Relations, Far East Hospitality Trust “Happy to see IRPAS and ISCA have come together to share this new and evolutionary reporting. Very good first step!” - Joseph Nah Song Sen, Principal Consultant, Watchman Consulting “Thank you for putting a highly informative and insightful session together. We were very impressed by the knowledge of the presenters and their presentation. There was a lot to take away.” - Nora Tan, Senior Executive, CSR, City Developments “Kudos on a well organised event! I thoroughly enjoyed the presentations and insights shared.” - Shorbani Roy, Freelance consultant
MONTHLY NETWORKING EVENTS – November 2014
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“IRPAS Year-End Event 2014 – The Market for Investor Relations Officers and Career Development Opportunities” By Heather McGregor (aka Mrs Moneypenny), The Financial Times 4 November 2014; 68 attendees “I was glad to visit SGX for the first time, and met various interesting ladies in fact, from a variety of companies and backgrounds. Good event!” - Catherine van der Wielen, CFO Change | COO Singapore, Credit Suisse “Every point she made was relevant.” - Kathy O’Brien, Managing Director, Red Shoe Communications “Good speaker. Insightful.” - Jessica Vas, Intern, Brunswick “Informative!” - Philip Leng, Consultant, Solomon Alliance